Report No. 12

4. Scope of total income: Residents.-

(1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which-

(a) is received or is deemed to be received in India in such year by or on behalf of such person; or

[Section 4(1)(a), part]

(b) accrues or arises or is deemed to accrue or arise to him in India during such year; or

[Section 4(1)(b)(i)]

(c) accrues or arises to him without India during such year; or

[Section 4(1)(b)(ii)]

(d) having accrued or arisen to him without India be fore the beginning of such year and after the 1st day of April, 1933, is brought into or received in India during such year by him or on his behalf; or

[Section 4(1)(b)(iii)]

(e) having accrued or arisen to him in a merged territory other than Cooch-Behar after the 1st day of April, 1933, and before the commencement of the previous year for the assessment year 1949-1950, is brought into or received in any part of India other than that merged territory during such year by him or on his behalf; or

(f) having accrued or arisen to him in a territory which, immediately before the 1st day of November, 1956, was comprised in a Part B State other than Jammu and Kashmir, or in the merged territory of Cooch-Behar, after the 1st day of April, 1933 and before the commencement of the previous year for the assessment year 1950-1951, is brought into or received in any part of India other than that territory or merged territory during such year by him or on his behalf; or

(g) having accrued or arisen to him in the State of Jammu and Kashmir after the ist day of April 1933, and before the commencement of the previous year for the assessment year 1954-1955, is brought into or received in any part of India other that the State of Jammu and Kashmir during such year by him or on his behalf

[Section 4(1) Expl. 4, read with section 4(i)(b)(iii) and section 2(14A)]

(2) Non-residents.-Subject to the provisions of this Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which-

(a) is received or is deemed to be received in India in such year by or on behalf of such person; or

(b) accrues or arises or is deemed to accrue or arise to him in India during such year. [Section 4(1)(a), part and section 4(1)(c)]

(3) Income accruing or arising without India shall not be deemed to be received in or brought into India within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet prepared in India.

[Section 4(1), Expin. 1]